Energy markets saw a sharp reaction after fresh attacks targeted major gas facilities in the Middle East. Prices in the UK jumped by around 23%, reaching 171p per therm, while global oil prices also increased by about 5% to nearly $113 per barrel.
The biggest impact came after strikes damaged a major gas facility in Qatar. Officials confirmed that the country’s main energy hub suffered “extensive damage,” forcing partial shutdowns and creating panic in global markets.
The affected site, Ras Laffan, is known as the world’s largest liquefied natural gas plant. Any disruption here directly affects global energy supply, which is why prices reacted so quickly.
The situation escalated after reported strikes linked to Iran. What started as military tensions has now expanded into attacks on energy infrastructure, which is considered the backbone of Gulf economies.
Other countries in the region also felt the impact. Facilities in the United Arab Emirates were shut down after being hit by debris, while Saudi Arabia reported intercepting attacks near key areas including Riyadh.
Despite strong air defense systems, some strikes managed to cause damage, showing the seriousness of the situation. Qatar has responded by expelling two Iranian diplomats, while Saudi Arabia has warned it may take military action if tensions continue.
Read more: Six-hour gas loadshedding even during Eid days: New SSGC schedule
The crisis has raised concerns about global energy security. Even earlier warnings from leaders like Donald Trump highlighted how critical these gas fields are for the world economy.
Experts say these developments mark one of the most serious escalations in recent times for the energy sector. As long as tensions remain high, global prices may continue to fluctuate.
Energy markets react quickly to conflict. Any damage to major gas sites increases prices fast. This situation can affect fuel and electricity costs worldwide. If tensions grow, prices may rise even more.
The increase in gas prices reflects the market "pricing in long-lasting disruption", says Matthieu Favas, commodity editor at British news and current affairs magazine the Economist, who calls the jump “huge”.
Read more: HEC announces major change in universities’ curriculum - what students will learn
Favas tells Radio 4's Today programme that the hope would be that Qatar's gas facility is "restarted within weeks", but after several attacks it is "clear that this is unlikely to happen".
However, he says we are still a long way off the peaks we saw in the aftermath of Russia’s invasion of Ukraine.
Favas says prices could rise further when demand - which is currently fairly low due to the time of year - increases.
"Demand will pick up as we enter summer in countries that need to use a lot of air conditioning.
"Europe will need to restock, as well as Asia. So they will be competing for supplies which is very likely to push the price higher.”
